With a market of Rs. 37,348.54 crore, Cummins India Limited is a large-cap firm in the engineering sector. Cummins India Limited is the top producer of diesel and natural gas engines in the country. Engines, Power Systems and Distribution are the three business divisions that make up Cummins India Limited, one of the seven legal entities that make up the Cummins Group in India. The 52-week high has been forecast for the stock by research experts at brokerage company ICICI Direct Research, who have given buy advice to the stock.
Research analysts at brokerage firm ICICI Direct Research have advised to buy the stock in the range Maintaining stop loss of 1345-1370 1,245.00, and has set a target price of 1,555.00 in the 3-month target frame.
Research analysts at brokerage firm ICICI Direct Research said in a note that “Capital goods sector has been one of the key outperformers of CY22 and has been propelled after giving the sector index a breakout from a decade of consolidation in CY21. Within the sector, we remain constructive on Cummins India as it has generated a breakout above a bullish flag pattern indicating an uptrend and offering a fresh entry opportunity.”
“The stock, earlier during October 2022, resolved above the multi-year consolidation phase, indicating a structural turnaround. On the shorter time frame, it recently produced a sharp retracement from the last nine weeks of decline ( 1289-1150) highlighted the strong price structure in only four weeks. Over the past two years, the stock has retraced from the 20-week EMA on several occasions, thus providing an incremental buying opportunity. In the current scenario also, it has crossed the 20 week EMA (currently 1206) expose the inherent power,” he said.
He further claimed that “we expect the stock to continue its positive momentum and move up 1555 in the coming months as this is the measuring implication of the recent flag breakout and confluence of price parity with the previous up move ( 951–1289) as estimated from the Recent Basin 1150.”
Shares of Cummins India Limited on NSE closed on Friday at 1,342.05 each, up 0.09% from its previous close. 1,340.80. In its previous trading session, the stock registered a total volume of 763,460 shares as compared to 20-day average volume of 591,812 shares. The stock touched a 52-week high 1,380.00 (07-Nov-2022) and 52-week low 842.00 (29-Nov-2021), hence the target price of 1,555.00 set by the brokerage, if met, would be a new 1-year high for the stock.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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